An Intriguing Escalation

The IDF is bombing banks in Lebanon:

The Israeli military launched airstrikes on branches of a bank in Lebanon that the U.S. and Israel have linked to Hezbollah, escalating its military campaign to strike institutions that are part of the group’s far-reaching network of economic and social influence.

The Israeli air force hit branches of Al-Qard Al-Hassan, a U.S.-sanctioned bank that was established in the 1980s and that offers financial services, including loans and ATM deposits and withdrawals, to the Shiite community in Lebanon. The Israeli military says the bank is also central to Hezbollah’s economic functioning.

Lebanon’s state-run National News Agency said a series of Israeli strikes hit Beirut’s southern suburbs and elsewhere in the country on Sunday night, local time, including three strikes on branches of the bank.

The strikes mark an expansion of Israel’s offensive against Hezbollah to target an institution that has no overt military purpose. In the past Israel has said its strikes focused on Hezbollah’s military infrastructure, though its attacks have also destroyed residential buildings and hit municipal and other civilian infrastructure.

Israeli officials said the strikes aimed at harming Hezbollah’s financial assets as well as weakening its ties with the community. The strikes took place on Sunday evening, when the bank branches were likely empty.

It would certainly be fascinating to see the outrage if Russia and Iran started responding in kind and bombing banks in New York and elsewhere that are central to the war efforts against them. This is potentially a very dangerous escalation, particularly in light of the coming BRICS announcement about its alternative to the SWIFT banking system.

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